Integration of remote-sensing based metrics and econometric models to assess the socio-economic contributions of carbon sequestration in unmanaged tropical dry forests

Abstract

Carbon sequestration by forests is one of the vital ecosystem services regulating the global climate. Equally important are the socio-economic co-benefits of carbon sequestration, given their implications for designing policies focused on conservation or restoration of tropical forests. Much debate has been around how to account for, and maximize, the co-benefits of carbon sequestration. Prior research suggests that a better understanding of the spatial relationship between carbon sequestration potential and forest types and dynamics - as a function of geographical context and time - is needed to better estimate their socio-economic benefits. Hence, this paper uses the Tropical Dry Forests of Central and South America to propose a new approach to quantify carbon sequestration of this biome, and its efficiency, using time series of the Terra-MODIS satellite. Our estimations of carbon sequestration are then coupled with a benefit transfer approach to infer carbon sequestration’s monetary cost. Results reveal that these tropical forests sequester an annual average of 22.3 ​± ​3.3 tCO2 ha-1 yr-1 or in total, 1.16 GtCO2. The associated social cost of carbon, calculated using three econometric models, ranges from USD 489 ​ha-1 ​yr-1 to USD 2828 ​ha-1 ​yr-1. These results can open new perspectives regarding the benefits of carbon sequestration against the costs of the negative impacts of climate change for national welfare accounts, their relevance for environmental policy-making, and the implementation or monitoring of carbon-based incentive programs (e.g., WAVES).